US/India: Warren Buffet buys into India’s largest digital payments company

Warren Buffett is gearing up to invest in India’s top mobile payments firm. The renowned investor’s company, Berkshire Hathaway, is set to pick up a stake in Paytm, a source familiar with the deal told The Economic Times on Monday, August 27.

The two companies have been discussing for several months an investment of about 25 billion rupees (US$360 million), the source said, adding that the deal could be announced as soon as this week.

A deal that size would value Paytm at over US$10 billion, according to the Economic Times. The newspaper said that Todd Combs, one of Berkshire’s key fund managers, is leading the transaction. He is reportedly seen as a potential chief investment officer at the firm.

Paytm is India’s biggest mobile commerce platform and is already backed by Japan’s SoftBank and Chinese tech giant Alibaba and its fintech affiliate Ant Financial. Two years ago, Paytm announced it saw a sizable growth in traffic when India unexpectedly pulled 86% of its cash from circulation, leading to a massive cash crunch. That allowed digital payment firms to provide an alternative mode of payment to India’s consumers.

Full Content: The Economic Times